Following are two recent transactions of Larson Realty:
• Received $24,000 advance payment for one year’s rent on an office building being leased to an accounting firm by Larson.
• Paid $6,000 in advance for six months of newspaper advertising.
Required:
(a) Prepare a general journal entry to record each of these transactions in Larson’s accounting records.
(b) Prepare a general journal entry for each transaction from the point of view of the other party (company) to the transaction.
(c) Were Larson’s total assets increased, decreased, or unchanged as a result of each of these transactions?